Accommodation vendors urged to stop demanding deposit from NSFAS funded college students
Accommodation vendors urged to stop demanding deposit from NSFAS funded college students
Blog Article
The National Student Financial Aid Scheme (NSFAS) has urged landlords to not require a deposit or top-up payment from NSFAS-funded students.
This arrives after NSFAS acquired stories about some accommodation companies who need NSFAS-funded students to pay a deposit or top-up payment in order to get access to the accredited private accommodation.
Friday, February 7, 2025
"NSFAS reminds accommodation companies in the compulsory conditions, as supplied by the Standardised Fixed-Term Lease Settlement amongst the personal accommodation providers and NSFAS funded students," NSFAS said in a press release on Thursday.
The Standardised Fixed-Term Lease Agreement states which the lease will likely be paid month-to-month to the accommodation service provider (lessor) by NSFAS, on behalf on the lessee (NSFAS funded student), in accordance with the NSFAS conditions and terms for private accommodation providers’ participation on the student accommodation portal.
"The lessor may not involve or permit the lessee to pay a deposit, top-up payments, or almost every other kinds of payment to the lessor, or almost every other person in connection with this arrangement, which includes payment of hire, even though awaiting payment from NSFAS. The lessor shall have no recourse from the lessee for any default within the payment of rent by NSFAS," the arrangement reads.
The NSFAS conditions and terms for private accommodation companies’ participation on the student accommodation portal also states that: "Where the read more NSFAS-funded student is defunded as a consequence of an incorrect website selection by NSFAS, the scholar won't be chargeable for payment of any arrear rent for the accommodation company, up until finally the day of being defunded."
NSFAS explained that in which the NSFAS-funded student chooses to carry on occupying the leased premises, notwithstanding being defunded by NSFAS, the student will be responsible for payment of more info lease into the lessor in the date of getting defunded.
"Where the student is defunded by NSFAS due to a misrepresentation by the lessee/guardian at any stage, the student must immediately vacate the leased property; and will be liable for payment of all rent due to the accommodation provider.
"Where the student moves, accommodation providers without the prior approval of NSFAS, NSFAS may get more info elect not to pay any rental to the new accommodation provider, and any such rental payments will be for the student own nsfas allowances account," the scheme said.
The scheme emphasised that any dispute arising between the parties regarding the interpretation or implementation of the agreement, must be dealt with in accordance with any dispute resolution procedure determined by NSFAS for this purpose.
From: SAnews.gov.za